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Employee Retention Tax Credit (ERTC)

Claim your cash refund before its too late.
No repayment, just cash refund from the government!!!

Business owners get up to $26,000 per employee for 2020 and 2021 with the ERTC cash refund!

What is ERTC tax credit?

Established by the CARES Act, it is a tax credit that you can claim for your business. The ERTC is available to both small and mid-sized businesses. It is based on qualified wages and healthcare paid to employees.

How much cash refund can you get?

The maximum refund per employee is $26,000.
For 2020, the maximum credit is $5,000 per employee.
For 2021, the maximum credit is $7,000 per employee per quarter for the first 3 quarters.

Who can claim the ERTC?

Any businesses can claim the ERTC. Restaurants, doctors, medical offices, construction companies, lawyers, non profit organizations are just a few examples.

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How to Qualify for ERTC?

To qualify, your business must have been negatively impacted in either of the following ways:

  • A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operating hours, limiting the number of customers on your premise, and the inability to travel or restrictions of group meetings.
  • Your business experienced a revenue decline of at least 20% in Q1, Q2, and/or Q3 of 2021
  • Your business experienced a revenue decline of at least 50% in Q2, Q3 and/or Q4 of 2020
  • Your business is a recovery start up business that started after February 15, 2020. The maximum credit for RSB is $50,000 for Q3 and Q4 of 2021.
  • Initially, under the CARES Act of 2020, businesses were not able to qualify for the ERC if they had already received a Paycheck Protection Program (PPP) loan. With new legislation in 2021, employers are now eligible for both programs.

FAQ

I received a PPP loan, am I qualified?

You can still qualify for an ERTC refund check, even if you had PPP loan. Your business can now have both a PPP loan and ERTC refund, however, special calculations around payroll wages and attribution is required.

I did not have a revenue reduction, can I still be qualified?

There are many ways businesses fully or partially suspend operations during each calendar quarter can qualify. We will help you document the partial suspensions as part of the qualifying process. This includes, for example, capacity restrictions on indoor dining, canceled trade shows and group meetings, and other interruptions that are non-nominal in nature.

How long does it take?

Our Experts usually take 1-2 weeks to process your payroll, reconcile any PPP covered period overlap, and build out the attribution schedules. We will then file your forms with the IRS who will take between 6 months to process your tax credit and send you a check.

What constitutes a partial suspension of operations?

A partial suspension of operations can take many forms. Here are some common examples we see in businesses like yours:

  • unable to attend trade shows in-person
  • had staff go from in-office to work from-home and had an impact
  • retail or restaurant that reduced the number of customers allowed inside
  • closed down a department or business unit while other units continued to operate
  • extra cleaning needed that reduced operating hours

    • If your business had to change operations due to governmental orders your business can qualify?

    A change in operations could mean extra cleaning or sanitizing, limiting capacity or reducing hours, installing/utilizing protective equipment, temperature checks, or operational impact related to key suppliers or customers. For example, a law firm may have no longer been able to do in-person court hearings or in-person depositions, and cases may have been delayed, even if the firm continued to operate.

    Why shouldn't I let my payroll service handle this?

    Your Payroll Service does an excellent job of executing the fundamentals of paying your employees, paying your employment taxes and filing your quarterly reports. But computing your ERTC credits requires visibility into your P&L and PPP forgiveness applications. The Payroll Services that we’ve worked with so far are happy to provide the payroll registers that we need to perform the allocations. In fact, most Payroll Services are asking clients to sign an indemnification waiver before submitting a Form 941-X because the Payroll Service can take no responsibility for the accuracy of the ERTC credits you are claiming. For them to involve themselves in the intricacies of this calculation, it is a liability and beyond their scope of services.

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